Agrium To Take Up 13.9 Million Shares.

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 26, 1997--Agrium Inc. (TSE, NYSE AGU.) said today that preliminary results of its offer to purchase its common shares indicate the offer was successful.

As a result, the Company said it will purchase, subject to verification, 13.9 million shares at a price of Cdn $20.00.

The preliminary count by the R-M Trust Company, depository for the offer, indicated that 27,529,580 shares were deposited at Cdn $20.00. As a result of over-subscription of the offer at the clearing price, shares deposited at Cdn $20.00 will be subject to a proration factor of about 50 percent. As outlined in the offer circular, lots of less than 100 shares tendered at the clearing price are not subject to proration.

The purchase price and proration factor are subject to final confirmation and the proper delivery of all shares deposited. Payment for shares properly deposited and accepted will be made by March 3, 1997. Shares not purchased will be returned as promptly as possible.

The shares which the Company expects to purchase represent about 10 percent of the approximately 140.7 million shares outstanding immediately prior to the offer. After purchasing the shares, Agrium will have approximately 126.8 million common shares outstanding. The buyback is expected to be accretive to the Company's earnings per share.

Agrium Inc. is the largest North American producer of nitrogen fertilizers, and a major producer of potash and phosphate fertilizers. The Company is also a leader in the wholesale distribution and retail marketing of fertilizers, related products, and services to the agricultural industry.

CONTACT: Agrium Inc.

Gordon A. Milne, 403/ 258-4615

Dick Nichols, 403/ 258-5746

[e-mail]

1-800-399-3821 (Automatic Faxback)